00009300072012-10-162012-10-160000930007ck0000930007:S000002976Memberck0000930007:C000008173Member2012-10-162012-10-160000930007ck0000930007:S000002976Memberck0000930007:C000008172Member2012-10-162012-10-160000930007ck0000930007:S000002976Memberck0000930007:C000008170Member2012-10-162012-10-160000930007ck0000930007:S000002976Memberck0000930007:C000008169Member2012-10-162012-10-160000930007ck0000930007:P0001-S000002976Memberck0000930007:S000002976Member2012-10-162012-10-16Other2012-10-16PACE SELECT ADVISORS TRUST0000930007false2012-10-162012-10-162011-11-28PACE® International Emerging Markets Equity Investments &nbsp;<p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:9.0pt;font-family:"Arial","sans-serif"'>PACE Select</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:8.0pt;margin-right:0in;margin-bottom:0in; margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none"><font style='font-size:9.0pt;font-family:"Arial","sans-serif"'>Prospectus &amp; SAI Supplement</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:8.0pt;margin-right:0in;margin-bottom:0in; margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none"><font style='font-size:26.0pt;font-family:"Times New Roman","serif"'>PACE® Select Advisors Trust</font></p> <p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-left:0in;font-size:11.0pt;font-family:'calibri','sans-serif';margin-bottom:0in;margin-bottom:.0001pt;line-height: normal;text-autospace:none"><font style='font-size:26.0pt;font-family:"Times New Roman","serif"'>PACE® International Emerging Markets Equity Investments</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:14.9pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:12.0pt;font-family:"Arial","sans-serif"'>Supplement to the prospectuses relating to Class A, Class B, Class C and Class Y shares (the &quot;Multi-Class Prospectus&quot;) and Class P shares (the &quot;Class P Prospectus&quot;) (collectively, the &quot;Prospectuses&quot;) and the Statement of Additional Information (&quot;SAI&quot;), each dated November 28, 2011, as supplemented to date</font></b></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:22.7pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>October 16, 2012</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Dear Investor,</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The purpose of this supplement is to update information regarding PACE International Emerging Markets Equity Investments (&quot;International Emerging Markets Equity Investments&quot;) (the &quot;fund&quot;), a separate series of PACE Select Advisors Trust (the &quot;Trust&quot;). This supplement updates information regarding the fund's investment advisory arrangements. At the recommendation of UBS Global AM, the Trust's Board has appointed Lee Munder Capital Group, LLC (&quot;Lee Munder&quot;) to serve as a new, additional investment advisor to the fund. Lee Munder is assuming investment advisory responsibility with respect to a portion of the fund's portfolio effective on October 16, 2012. In addition, at the recommendation of UBS Global AM, the Trust's Board has terminated Delaware Management Company and Pzena Investment Management, LLC as sub-advisors to the fund, effective as of the close of business on October 15, 2012. Mondrian Investment Partners Limited and William Blair &amp; Company L.L.C., the fund's current investment advisors, will continue to serve as the fund's investment advisors. The changes are described in greater detail below.</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Effective immediately, the Prospectuses and SAI are hereby revised as follows:</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The section captioned &quot;PACE International Emerging Markets Equity Investments Fund summary&quot; and sub-headed &quot;Management process&quot; beginning on page 53 of the Multi-Class Prospectus and page 52 of the Class P Prospectus is revised by replacing the second sentence of the first full paragraph of that section with the following:</font></b></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Mondrian Investment Partners Limited (&quot;Mondrian&quot;), William Blair &amp; Company L.L.C. (&quot;William Blair&quot;) and Lee Munder Capital Group, LLC (&quot;Lee Munder&quot;) currently serve as the fund's investment advisors.</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The section captioned &quot;PACE International Emerging Markets Equity Investments Fund summary&quot; and sub-headed &quot;Management process&quot; beginning on page 53 of the Multi-Class Prospectus and page 52 of the Class P Prospectus is revised by deleting the fourth and fifth paragraphs of that section in their entirety and inserting the following as the final paragraph of that section:</font></b></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:8.0pt;margin-right:0in;margin-bottom:0in; margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace:none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Lee Munder uses a bottom-up quantitative approach to investing in emerging markets equity securities. Inefficiencies in the market create opportunities, and Lee Munder believes that a quantitative process, which relies on sophisticated mathematical or statistical models in selecting investments, is well-suited to capture these inefficiencies and provide an opportunity to outperform the market. Lee Munder's stock selection model groups factors used to select investments into three major categories: market dynamics, value and quality. Market dynamic factors are designed to exploit short term trends as Lee Munder believes investors under-react to certain developments in the short term; value factors are intended to capture mean reversion (i.e., a return to the average) as investors tend to overreact to certain developments in the longer term; and quality factors incorporate information about the quality of earnings that investors tend to overlook.</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:8.0pt;margin-right:0in;margin-bottom:0in; margin-left:0in;margin-bottom:.0001pt;line-height:.05pt;text-autospace:none"><font style='font-size:12.0pt;font-family:"Times New Roman","serif"'>&nbsp;</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The section captioned &quot;PACE International Emerging Markets Equity Investments Fund summary&quot; and sub-headed &quot;Management risk&quot; on page 55 of the Multi-Class Prospectus and page 53 of the Class P Prospectus is revised by inserting the following as the final sentences of that section:</font></b></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>An investment advisor for the fund employs a complex strategy using proprietary quantitative models in selecting investments for the fund. Investments selected using these models may perform differently than expected as a result of the factors used in the models, the weight placed on each factor, changes from the factors' historical trends, and technical issues in the construction and implementation of the models (including, for example, data problems, software issues, or other types of errors). There is no guarantee that the investment advisor's quantitative models will perform as expected or result in effective investment decisions for the fund.</font></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The section captioned &quot;PACE International Emerging Markets Equity Investments Fund summary&quot; and sub-headed &quot;Principal risks&quot; beginning on page 54 of the Multi-Class Prospectus and page 52 of the Class P Prospectus is revised by inserting the following as the final paragraph of that section:</font></b></p> <p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Limited capitalization risk:</font></b><font style='font-size:10.0pt;font-family:"Times New Roman","serif"'> </font><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>The risk that securities of smaller capitalization companies tend to be more volatile and less liquid than securities of larger capitalization companies. This can have a disproportionate effect on the market price of smaller capitalization companies and affect the fund's ability to purchase or sell these securities. In general, smaller capitalization companies are more vulnerable than larger companies to adverse business or economic developments and they may have more limited resources.</font></p> <p class="MsoNormal" align="center" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:11.25pt;margin-right:0in; margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center; line-height:normal;text-autospace:none"><font style='font-size:10.0pt; font-family:"Times New Roman","serif"'>ZS-596</font></p> <p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-left:0in;margin-bottom:10.0pt;line-height:115%;font-size:11.0pt;font-family:'calibri','sans-serif';">&nbsp;</p><p class="MsoNormal" style="font-size:11.0pt;font-family:'calibri','sans-serif';margin-top:12.0pt;margin-right:0in;margin-bottom: 0in;margin-left:0in;margin-bottom:.0001pt;line-height:normal;text-autospace: none"><b><font style='font-size:10.0pt;font-family:"Arial","sans-serif"'>PLEASE BE SURE TO RETAIN THIS IMPORTANT INFORMATION FOR YOUR FUTURE REFERENCE.</font></b></p> <p class="MsoNormal" style="margin-top:0in;margin-right:0in;margin-left:0in;margin-bottom:10.0pt;line-height:115%;font-size:11.0pt;font-family:'calibri','sans-serif';">&nbsp;</p>PCEMXPWEAXPWECXPWEYX